PRINCIPAL COMMISSIONER OF INCOME TAX VADODARA 1 vs. AMBALAL SARABHAI ENTERPRISE LTD

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TAXAP/866/2018HC GujaratGJHC24035831201801 October 2019Bench: HONOURABLE MS. JUSTICE HARSHA DEVANI,HONOURABLE MS. JUSTICE SANGEETA K. VISHEN2 pages
AI SummaryWithdrawn

What did the High Court hold?

The High Court held that in light of Circular No. 17 of 2019, which mandates that appeals with a tax effect not exceeding Rs. 1,00,00,000/- should not be filed before the High Court and is applicable retrospectively to pending appeals, the appellant did not press the present appeal. Consequently, the appeal was disposed of as not pressed. The reasoning was based on the explicit statement by the appellant's counsel regarding the tax effect and the applicability of the circular. The ratio decidendi is that appeals falling below the monetary threshold specified in the CBDT circular, when made applicable retrospectively, are to be dismissed as not pressed. The operative direction was to dispose of the appeal as not pressed, with a liberty to the appellant to seek revival if there was any error in the tax effect computation or if the circular was not applicable for any reason.

What were the facts?

The appellant, Principal Commissioner of Income Tax, Vadodara 1, filed a Tax Appeal before the High Court of Gujarat at Ahmedabad against Ambalal Sarabhai Enterprise Ltd. The appeal was filed against an order or action of an authority, though the specific authority and assessment year(s) are not detailed in the provided text. The material fact that led to the disposal of the appeal was the tax effect involved, which was stated to be less than Rs. 1,00,00,000/-. The procedural history is that the appeal was filed and subsequently heard by the High Court.

What were the issues?

The primary issue before the High Court was whether the appeal should be entertained given the tax effect involved. The appellant's contention, as presented by Mr. Varun K. Patel, learned senior standing counsel, was that the tax effect in the appeal was less than Rs. 1,00,00,000/-. This was in light of Circular No. 17 of 2019 dated 08.08.2019 issued by the CBDT. This circular stipulated that no appeal where the tax effect does not exceed Rs. 1,00,00,000/- should be filed before the High Court and was made retrospectively applicable to pending appeals. The revenue, therefore, did not press the appeal. The judgment records no argument for the respondent.

AI-generated summary — verify with the full judgment below

C/TAXAP/866/2018 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 866 of 2018 ========================================================== PRINCIPAL COMMISSIONER OF INCOME TAX VADODARA 1 Versus AMBALAL SARABHAI ENTERPRISE LTD ========================================================== Appearance: MR.VARUN K.PATEL(3802) for the Appellant(s) No. 1 MR B S SOPARKAR(6851) for the Opponent(s) No. 1 ========================================================== CORAM: HONOURABLE MS.JUSTICE HARSHA DEVANI and HONOURABLE MS. JUSTICE SANGEETA K. VISHEN

Date : 01/10/2019 ORAL ORDER (PER : HONOURABLE MS.JUSTICE HARSHA DEVANI) 1. Heard Mr.Varun K. Patel, learned senior standing counsel for the appellant and Mr.B.S. Soparkar, learned advocate for the respondent. 2. Mr. Varun K. Patel, learned senior standing counsel for the appellant, has stated that the tax effect involved in this appeal is less than Rs.1,00,00,000/-. Under the circumstances, in the light of the Circular No.17 of 2019 dated 08.08.2019 issued by the Government of India, Ministry of Finance, Department of Revenue, Central Board of Direct Taxes, which provides that no appeal wherein the tax effect does not exceed the monetary limit of Rs.1,00,00,000/- shall be filed before the High Court and which has also been made retrospectively applicable to Page 1 of 2

C/TAXAP/866/2018 ORDER pending appeals, the learned senior standing counsel for the appellant does not press the present appeal. 3. The appeal is, accordingly, disposed of as not pressed in light of the Circular dated 08.08.2019. However, in case there is any error in the computation of the tax effect involved or if, for any reason, the Circular is not applicable, it would be open for the appellant to seek revival of the appeal. (HARSHA DEVANI, J) (SANGEETA K. VISHEN,J) RAVI P. PATEL Page 2 of 2

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